Plenary Lecture
Multiple criteria decision making: Analysis of the selection process of the regions with state support
Associate Professor Helena Brozova
Dept. of Systems Engineering
Faculty of Economics and Management
Czech University of Life Sciences Prague
Czech Republic
E-mail: brozova@pef.czu.cz
Abstract: Multiple criteria decision-making models are an important type of operations research models that explicitly consider multiple criteria in decision-making process. In personal or professional live there are present conflicting criteria that need to be evaluated in making decisions. It is necessary to explicitly evaluate multiple criteria as well as to properly structure the problem. In making the decision of e.g. whether to build a nuclear power plant or not, and where to build it, there are not only very complex issues involving multiple criteria, but there are also multiple parties who are deeply affected from the consequences. In government policy, support and satisfaction of different social group, and the cost of providing of proper social policy are two conflicting criteria that should be considered.
The aim of the regional policy is to reduce disparities among regions and to ensure their development. There are two main concepts of regional policy. The first concept is a policy of creating conditions for overall economic growth. The second concept is based on helping directly the economically weak regions. Therefore the Government and the Ministry for Regional Development and the Ministry of Industry and Trade of the Czech Republic select regions with concentrated state support (structurally challenged regions, economically weak regions and regions with high unemployment) which are less developed in many socioeconomic indicators.
Region evaluation process includes criteria (indicators) as unemployment rate, number of applicants per one job place, income tax rate, number of private entrepreneurs and purchasing power. The set of criteria and their relative preferences during the years 1991 – 2010 were changing.. Thus we examine trend of the criteria weights. Two approaches are discussed for evaluation of criteria weights. The first approach is based on the method of multiple attributes analysis – the Analytic Network Process. Results of this method show the continuity of the whole process of selection of supported regions. The second approach is based on the Data Envelopment Analysis. This model allows analyzing practical efficiency of the regions also in the time series. The analysis of the criteria weights can be made using input and output weights calculated for individual regions. The selection of regions with state support is also multiple criteria process and analysis of used method of selection of the best one is very important problem. The problem is also the efficiency of state support of selected regions, which can be evaluated using the Data Envelopment Analysis.
Brief Biography of the Speaker: Helena Brožová, Assoc. Prof. She obtained her Master Degree in Operations Research and Management Theory at the Faculty of Mathematics and Physics, Charles University in Prague, Ph.D. Degree in Economics at the Faculty of Economics and Management, Czech University of Life Sciences (DSE FEM CULS). She is the Associate professor in Systems Engineering. She works at the DSE FEM CULS (former University of Agriculture). She teaches many subjects as Mathematical Methods in Economics, Supply Chains Management, Multiple Criteria Decision-making, System Theory and Applied System Science, and Decision Support Systems. Her research area consists of practical implementation of Operations Research and System Sciences, and especially concerns of processes of Multiple Criteria Decision Making and Decision-Making models. She is a member of Czech Society of Operation Research and International Society of Multiple Criteria Decision Making. She is a member of the project team for the scientific project “Information and Knowledge Support of Strategic Management”.